Botswana companies receiving and making foreign payments without exchange controls
Botswana is one of the few African countries with no exchange controls, abolished in 1999. Companies can hold foreign currency and pay abroad freely. The pula follows a crawling peg against a basket of the rand and the IMF's SDR, which shapes conversion costs.
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A Gaborone construction supplies company buys most of its stock from South Africa in rand and sells to mining and government clients in pula, with some contracts in dollars. It holds rand to pay suppliers and dollars from its dollar contracts. Botswana's lack of exchange controls makes that simple.
No exchange controls
Botswana abolished exchange controls in 1999. Companies can hold foreign currency accounts, receive payments from abroad, pay suppliers abroad and hold accounts outside Botswana, subject to normal banking checks.
The pula's crawling peg
The Bank of Botswana manages the pula through a crawling peg against a basket of the South African rand and the IMF's Special Drawing Rights. The weights and the rate of crawl are set each year. The pula therefore moves with the rand to an extent, and against the dollar more.
Matching currencies
- Pay South African suppliers in rand from a rand balance.
- Pay dollar costs from dollar revenue.
- Convert the surplus to pula ahead of payroll.
Where Rivet fits
A Rivet business account accepts registered companies after verification, including Botswana companies. Approved companies get US account details on every plan, euro and sterling details from the Growth plan, and on Scale balances in 30 currencies. Suppliers in 120+ countries can be paid at a rate shown before you confirm. Rivet is not a bank; regulated partner institutions hold the funds.
Questions people ask
Does Botswana have exchange controls?
No. Botswana abolished exchange controls in 1999.
How is the pula managed?
The Bank of Botswana runs a crawling peg against a basket of the rand and the SDR, with weights and a rate of crawl set annually.
Should Botswana companies hold rand?
If they buy regularly from South Africa, yes. Paying rand from a rand balance avoids conversion each time.
Can Botswana companies hold accounts abroad?
Yes. Without exchange controls, companies can hold foreign accounts, subject to normal banking checks.
Sources
Rashidatou writes Rivet's guides to how money moves between countries: the payment rails, what each one costs, and the account details a company needs to get paid in another currency. Every figure in Rashidatou's articles is traced to the scheme rulebook, the regulator or the provider's published price list, and those sources are listed at the end.
More from Rashidatou K. →This article is general information, not legal, tax or financial advice. Rules and fees change; check the sources above and the provider’s current terms before you act on them.
- botswana
- pula
- exchange controls
- zar
- usd
- payments
